Canadian pension plans return median -1.5% in Q3 as bond yields rise, Northern Trust says
TLT•Northern Trust's median Canadian pension plan returned -1.5% in the quarter ended September 30, bringing year-to-date returns to 4.4%. The FTSE Canada Universe Bond Index fell 3% in Canadian dollars, while the MSCI ACWI Index rose 1.8%.
1. Quarterly returns
Northern Trust's median Canadian pension plan returned -1.5% in the quarter ended September 30, bringing year-to-date returns to 4.4%. Rising bond yields drove losses, with the FTSE Canada Universe Bond Index down 3% in Canadian dollars. Long-term bonds fell 6.3%, compared with a 0.9% decline for short-term bonds.
2. Equity support
Global equities offered some support, with the MSCI ACWI Index rising 1.8% in Canadian dollars on resilient growth and strong corporate earnings.
